Why HK Companies Investment Becomes the Best Choice for Foreign Investors?

In recent years, with the continuous development of the global economy and the ongoing opening-up of the Chinese market, more and more international investors have turned their attention to this vibrant land known as Hong Kong. For many enterprises looking to enter the Asian market, choosing to set up a company in Hong Kong has become a trend. So, why is investing in a Hong Kong company considered the best choice for foreign-invested enterprises?

Firstly, Hong Kong, as an international financial hub, boasts a highly developed financial market and a sound legal system. According to the latest statistics, by the first quarter of 2025, the market capitalization of the Hong Kong Stock Exchange had exceeded 40 trillion HKD, making it one of the most important capital markets globally. Hong Kong's legal system is based on common law, ensuring the effectiveness of contract enforcement and the security of commercial activities. This stable rule-of-law environment not only attracts numerous multinational corporations to invest but also provides them with reliable risk management mechanisms.

Secondly, Hong Kong's advantageous geographical location makes it a bridge connecting mainland China with other parts of the world. With the deepening implementation of the Belt and Road Initiative and the Guangdong-Hong Kong-Macao Greater Bay Area development plan, Hong Kong’s position in regional economic cooperation has grown increasingly significant. For instance, trade between Hong Kong and mainland China increased by approximately 15% in the first half of this year, highlighting the close economic ties between the two regions. By setting up a company in Hong Kong, foreign enterprises can more conveniently explore the Chinese market and use Hong Kong as a stepping stone to expand into Southeast Asia and even broader international markets.

Furthermore, Hong Kong offers a series of preferential policies to attract foreign investment. For example, starting from 2025, Hong Kong has introduced various measures to support start-ups and innovation and technology development, including tax exemptions and research and development grants. These policies significantly reduce operational costs for businesses, enhancing their competitiveness. Additionally, Hong Kong boasts a rich pool of talent, whether locally trained professionals or elites from around the world, providing strong human resource support for enterprises.

It is worth noting that, against the backdrop of digital transformation, Hong Kong is actively embracing new technologies. In July this year, Hong Kong Cyberport announced the launch of a brand-new startup acceleration program aimed at helping more small and medium-sized enterprises achieve digital upgrades. This initiative will undoubtedly further enhance Hong Kong’s attractiveness as a center for technological innovation.

In summary, Hong Kong has become the ideal choice for foreign-invested enterprises thanks to its unique geographical advantages, sound legal framework, favorable supportive policies, and thriving digital economy. Looking ahead, with the changing global economic landscape and opportunities brought about by technological advancements, it is believed that more international capital will choose to take root and grow in this fertile land.